Rights & Obligations For Expats in Real estate
When buying property in VietNam, The rights for Expats is not the same to Vietnamese
Land Use Rights for Foreigners in Vietnam
According to Vietnamese law, foreigners can hold the LURC for 50 years or 70 years for some special cases. It is also possible for foreigners to extend the LURC once, depending on the government’s decision. The authority also has the right to take the LURC back if foreigners violate the LURC terms and conditions.
Depending on the payment schedule, a foreigner can lease land and pay annual rent known as annual arrangement; or they can choose to pay in one shot for the entire lease known as one-off arrangement. The annual arrangement allows foreigners to use the land for stated purposes and transfer assets; and the one-off arrangement permits foreigners to sublease, transfer, or mortgage the assets and land.
Real property law in Vietnam regarding homeownership
Cases in which foreigners are permitted to possess houses in Vietnam.
According to Vietnam’s real estate regulations, these are the subjects that can possess houses in Vietnam:
- Foreign companies, organizations or citizens residing and working in Vietnam
- Foreign companies, organizations or citizens investing in real property projects in Vietnam
Rules and restrictions for foreigners
However, there are still certain restrictions regarding foreigners owning houses within the territory of Vietnam:
- Expats can purchase a house in Vietnam as long as they own a valid tourist visa
- Foreigners can only possess up to 30% of the total number of units in an apartment complex; up to 250 separate houses in an area of a population equal to that of a ward-level unit
- Foreign individuals are allowed to buy up to 10% of the number of houses in a single property project
- Foreign citizens are restricted to possess houses only for a period of 50 years (from the release of the Certificate of homeownership in Vietnam)
- Foreign companies and organizations are restricted to possess houses within the time limit specified in the certificate of investment
- The purchaser of houses and lease must pay with the help of the credit organizations operating in Vietnam
- Foreigners married to Vietnamese citizens are granted with free homeownership
- Before the expiration of the homeownership, foreigners are allowed to sell, give away or donate the house
Real property law in Vietnam regarding land rights
Vietnam’s land use rights
In Vietnam, the people own land and the government administers the land on people’s behalf. That’s why both foreign or local citizens are not granted legal ownership of land. Citizens can only obtain land use right certificate (LRUC), which expresses their rights over the property. Only local Vietnamese people can own a LURC indefinitely, while foreign citizens are entitled to retain the certificate for no more than 50 years.
After 50 years, the government can either extend the LURC for foreigners or recover the land if the individuals or organizations didn’t obey Vietnam’s land law
Foreigners can choose to pay annual rental fees or pay the total lease amount at once. If you choose the first payment option, you can only utilize the property for stated purposes and sell assets as part of the property.
Meanwhile by paying the whole lease amount at once, you are allowed to sublease, mortgage or sell the land and the assets belong to the property.
How to achieve the homeownership certificate in Vietnam?
Foreigners can obtain the Ownership of Residential House and Land Use Rights Certificate (also known as the Pink Book or homeownership certificate) through a contract of leasing. Foreigners are only allowed to have this form of property ownership in Vietnam
Usage of property
The properties owned by foreigners can be sold, sub-leased, inherited and collateralized (previously only for owner occupying purposes).
During the ownership term, the homeowner is entitled to gift or sell their house(s) to individuals/entities eligible for home ownership in Vietnam; if not, upon the expiry of the ownership term, their house(s) shall belong to the State.
Tenure
The tenure allowed to foreign individuals buying homes is 50 years from the date the authority issues the house ownership certificate to the relevant owner with renewal possibility upon expiration. Foreign individuals married to Vietnamese citizens are entitled to freehold tenure. Eligible foreign entities shall have the tenure of ownership of apartment/house in accordance with the duration as stated in their business license/investment certificate.
Ownership Limitations
Neither a foreign individual nor a company can buy, rent, purchase, receive, inherit or own more than 30% of the units in an apartment building, or more than 250 separate housing units in total.
The definition of a unit as a separate house includes villas, as well as row houses in areas where the population is organized by a traditional ward system.
Real estate ownership for expats in Vietnam
A property ownership certificate is an essential first step in acquiring real estate in Vietnam. This document, known colloquially as the Pink Book, expresses your entire ownership of real estate, which can include land and/or properties in Vietnam. The Pink Book is issued by the Ministry of Construction, and you can apply for it via an agent.
Furthermore, under Vietnamese housing legislation, foreigners are only permitted to own up to 30% of a project’s apartments. Regions designated for national defense and security are naturally not available for sale as well. To learn more about the regions designated for national defense and security, contact your local construction authorities.
The land rights in Vietnam can be complex for many people, especially for first-time foreign investors. Unlike other countries, lands in Vietnam are often owned by people conjointly and regulated by the Vietnamese government. With that being said, people are not allowed to own land legally in Vietnam. In other words, if they are interested in buying land in Vietnam, they cannot do so. But, they can own the rights for using the land.
After you have established your legal entity in Vietnam, you need to know how you can obtain land and use it without violating the land rights. A land use right certificate (LURC) is the first thing you should consider in this matter. This certificate is proof that you have the land use rights of property. In this article, we will dissect the land rights and how you can get land, instead of buying it, in Vietnam.
Currently, according to statistics of Expathelpvn, there are hundreds of eligible projects for sale to foreigners. If you need to find an agent, I’ll be here with you. You can contact
- Address: 9th Floor, VCCI Tower, No 462-464 Lach Tray, Ngo Quyen, Hai Phong
- Tel: 0374.330.915
- Hotline: 0366.456.179
- Email: expathelpvn@gmail.com
In addition to providing a list of projects for you to choose from, we can support the procedure until you own a house in accordance with Vietnamese law.
